Hershey braces for elasticity moderation even as it predicts ongoing strong sales through Q4

During Hershey’s third quarter earnings call with investors last Friday, executives touted strong gains in chocolate retail sales during the three months ending Oct. 2 and a strong start to Q4 thanks to Halloween, which saw participation and spend finally bounce back to pre-pandemic levels after subdued celebrations the past few years.

“In the North American confectionary segment, net sales growth of 10.4% was led by strong gains in our chocolate brands,”​ which saw retail sales grow 12.6% in the third quarter, resulting in segment share gains of more than 100 basis points and bringing the company’s chocolate market share to 47% in the quarter, CEO Michele Buck told investment analysts Friday.

Halloween offers Hershey reason to celebrate

Preliminary Halloween results suggest category retail sales are up double-digits this year and Hershey’s Halloween retail sales are up high single-digits, she added.

The company’s iconic Reese’s brand was one of several Hershey lines to share in this success – with retail sales growing more than 16% in the third quarter.

Buck attributed this success in part to “teams across the organization who have worked tirelessly to install new lines, reconfigure existing lines and optimize our offerings and investments to maximize output and get more Reese’s on the shelves for our consumers to enjoy.”

She added that innovations, including a new Reese’s Big Cup stuffed with Reese’s Puffs Cereal, which will be in stores nationwide this month, will help further drive demand and sales through the end of the year.

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